Correlation Between Hitachi Rail and Amazon
Can any of the company-specific risk be diversified away by investing in both Hitachi Rail and Amazon at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hitachi Rail and Amazon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hitachi Rail STS and Amazon Inc, you can compare the effects of market volatilities on Hitachi Rail and Amazon and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hitachi Rail with a short position of Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitachi Rail and Amazon.
Diversification Opportunities for Hitachi Rail and Amazon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hitachi and Amazon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hitachi Rail STS and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Hitachi Rail is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hitachi Rail STS are associated (or correlated) with Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of Hitachi Rail i.e., Hitachi Rail and Amazon go up and down completely randomly.
Pair Corralation between Hitachi Rail and Amazon
If you would invest 11,477 in Amazon Inc on January 26, 2024 and sell it today you would earn a total of 6,182 from holding Amazon Inc or generate 53.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hitachi Rail STS vs. Amazon Inc
Performance |
| Timeline |
| Hitachi Rail STS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amazon Inc |
Hitachi Rail and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitachi Rail and Amazon
The main advantage of trading using opposite Hitachi Rail and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitachi Rail position performs unexpectedly, Amazon can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Amazon will offset losses from the drop in Amazon's long position.| Hitachi Rail vs. Waste Management | Hitachi Rail vs. Fidus Investment Corp | Hitachi Rail vs. Ameriprise Financial | Hitachi Rail vs. Logan Ridge Finance |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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